China’s Oriental Energy to hold majority stake in PDH plant

18 October 2011 08:42[Source: ICIS news]

GUANGZHOU (ICIS)--?xml:namespace>China’s Oriental Energy will hold a larger stake in a proposed 1.2m tonne/year propane dehydrogenation (PDH) joint venture plant for producing propylene at Zhangjiagang, the company said on Tuesday.

Under a supplemental agreement signed on 16 October by the three partners of the project, Oriental Energy will hold a 56% stake as the project is expected to generate big profits due to a rise in the demand of propylene, it said in a statement to the Shenzhen Stock Exchange.

The other two partners, Huachang Chemical and Feixiang Chemical, will each hold a 22% stake, the statement added.

Oriental Energy is planning to issue non-public stocks to finance the project, the statement said.

The project, in Jiangsu province, is expected to start operating in early 2015 with an initial capacity of 600,000 tonnes/year. The entire facility is expected to come on stream before 2017, according to the companies.